MONEY LETTERS
2 MY DAUGHTER
By Jackie Cummings Koski
Educator Version
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
Teachers and Educators may use this presentation freely to teach students or as a class reference.
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2013 Book of the Year
Adult’s Money Management
Awarded by the Institute of Financial Literacy
“Money Letters 2 my Daughter” is the 2013 Winner of the
Excellence in Financial Literacy Education (EIFLE) Award
Adult’s Book of the Year, Money Management
The EIFLE Awards were established in 2007 by the Institute of Financial Literacy to
acknowledge innovation, dedication and a strong commitment to financial literacy education. It
has since become one of the most prestigious and sought after awards in the industry.
“Money Letters 2 my Daughter”
By Jackie Cummings Koski
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
To book Jackie Cummings Koski to speak to your
school, class or club, please contact:
Jackie Cummings Koski
jackie@moneyletters2.com
www.moneyletters2.com
Companies | Schools | Community Groups | Professional Organizations | Clubs | Churches | Non-Profits
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DISCLAIMER
The information contained in this presentation is for education and
information purposes only, and does not constitute professional
advice. The information provided is subjective and you should
always do your own research before making decisions. While
reasonable efforts are made to include accurate and up-to-date
information, the creator makes no warranties or representations
of any kind concerning the accuracy, timeliness or suitability of the
information provided for any purpose. Validity of the content
is not guaranteed and you are strongly urged to consult
a professional or other authority in the appropriate field
before acting on any of the content.
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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WHAT’S YOUR FINANCIAL IQ?
On a scale of 1 to 10, how would you rank the Financial IQ of:
Yourself ?
Your Kids?
Your Parents?
Our American Society?
1 is the worst and 10 is the best.
“I am not sure what your financial IQ is right now, but one thing I promise
is that it will be higher after we are done today, than before we started.”
--Jackie Cummings Koski
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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PRESENTER
Jackie Cummings Koski
-Mother of 17-year-old daughter
-Author, Money Letters 2 my Daughter
-Director, BetterInvesting Ohio/Kentucky/ Indiana Chapter
-President, Cincinnati Model Investment Club
-Account Executive, LexisNexis Risk Solutions (my day job)
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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IMPORTANT MONEY TOPICS
Here are the topics we will cover today:
1.
2.
3.
4.
5.
6.
7.
8.
Earning Money
Spending Money
Credit
Debt
Saving Money
Investing Money
Money and Taxes
Things Money Can’t Buy
Knowing more on these money topics will help raise your Financial IQ!
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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EARNING MONEY
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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EARNING MONEY
Career Choice
Don’t sell yourself short
Multiple income resources
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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EARNING MONEY
Does a College Degree make a difference?
Unemployment Rate by Level of Education*
June 2012
12.6%
• Less than a high
school diploma
8.4%
• High school graduates,
no college
7.5%
• Some college or
associate degree
4.1%
• Bachelor's degree and
higher
*Age 25 and older. Does not include active duty military or institutionalized individuals.
Source: Bureau of Labor Statistics, www.bls.gov
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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SPENDING MONEY
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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SPENDING MONEY
Budgeting
Small Expenses
Large Expenses
Expenses we don’t think about
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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SPENDING MONEY
Common Bank Account Fees (you should avoid)
Fees
Fees
(Part II)
Fees
(Part III)
Monthly
Service
Fee
Overdraft
Fee
Online Bill
Pay
ATM Fee
Extended
Overdraft
Fee
Paper
Statement
Fee
Foreign
ATM Fee
Overdraft
Protection
Stop
Payment
Fee
ATM
Balance
Inquiry
Nonsufficient
Funds
Wire
Transfer
Fee
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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CREDIT
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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CREDIT
What is credit?
Credit reports and scores
How is credit used by consumers
How businesses use your credit
reports and scores
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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CREDIT
Common Credit Card Fees (you should avoid)
Fees
(Part II)
Fees
Fees
(Part III)
Balance
Transfer
Annual
Fee
Over the
Limit
Cash
Advance
Returned
Payment
Wire
Transfer
Foreign
Transaction
Late
Payment
Credit Line
Increase
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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CREDIT
Credit Score Calculation
Length of
Credit History
15%
New Credit
10%
Types of Credit
10%
Payment
History
35%
Available Credit
being Used
30%
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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CREDIT
The only online resource authorized by federal
law to get your free annual credit report is:
www.annualcreditreport.com
www.annualcreditreport.com
www.annualcreditreport.com
You are allowed one free report per year
from each of the 3 major credit bureaus:
Experian | Equifax | TransUnion
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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CREDIT
Another helpful resource to keep track of your Credit Report and Score
www.creditkarma.com
Free
Service
Online
and
iPhone
Uses data
from
TransUnion
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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CREDIT
5 Credit Card Rules
Rule #1
• Only charge what you can pay off in full every month, before the due date
Rule #2
• Get a credit card with a sign up bonus, great perks and no annual fee
Rule #3
• Get a low interest rate (for the rare occasion that you may have to carry a balance)
Rule #4
• Manage your spending throughout the month and charge only what you can pay off
Rule #5
• If you can’t pay off what you charged in full in a given month, refer to Rule #1
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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DEBT
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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DEBT
What is debt?
Types of Debt
How much is debt costing you?
How to eliminate debt
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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DEBT
Guide to where to get a Loan
Credit Union
Online Bank
Community/Regional Bank
National Bank
Family & Friends
Payday Loan
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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DEBT
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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DEBT
Payoff of $8,750 in Credit Card Debt
25 Year
3 year
Payoff
Payoff
• 15% APR
• Pay only required minimum
payment of $219/month (2.5%
of balance)
• You will pay $8,507 in interest
• You will pay a total of $17,257
• 15% APR
• Pay $299/month ($80/month
over minimum payment)
• You will pay $2,209 in interest
• You will pay a total of $10,959
• Your savings in time and
interest is 22 years & $6,298!
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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SAVING MONEY
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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SAVING MONEY
When you should start saving
How much you should you save
The best place to put your savings
The difference between saving
and investing
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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SAVING MONEY
Banks should be insured by FDIC
www.fdic.gov
Credit Unions should be insured by NCUA
www.ncua.gov
Note: On January 1, 2014, the standard insurance amount will return to
$100,000 per depositor. For update go to websites listed above.
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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INVESTING MONEY
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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INVESTING MONEY
When you should start investing
There are risks and NO guarantees
Most common investments
Stocks | Bonds | Mutual Funds | ETFs
Do it yourself -vs- using a professional
My favorite investment guide:
www.clarkhoward.com
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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INVESTING MONEY
3 Easy ways to get to $1 million
Conservative (Slow)
Moderate (Medium)
Aggressive (Fast)
$130
$50
Per
Week
$95
Per
Week
Per
Week
45
5.5% Return
9%
Return
11% Return
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
25
40
Years
Years
Years
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INVESTING MONEY
$900
Per Year
From You
$1,800
Per Year Total
Contribution
$1
Million
After investing from
age 22-65 with 9%
annualized return
$900
Per Year
Company
Match
Based on $30,000/year salary , where you
contributed 3% each year to your 401(k) --$900
and your company matched that amount.
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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INVESTING MONEY
Do you have a great
Diversification
Small-Cap | Mid-Cap | International | Large-Cap | Emerging Markets
Happy
Bonds
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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MONEY AND TAXES
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
34
MONEY AND TAXES
Things you are taxed on
Filing tax returns electronically
Find out if you can file for free at www.irs.gov/freefile
Don’t forget about tax breaks
Payroll Tax
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
35
MONEY AND TAXES
Types of Payroll Taxes
Federal
State
SS/Medicare (FICA)
• Collected by IRS to
fund the country's
expenses
• Collected by your
state to fund the
expenses of the state
• Federal program that
provides income and
health insurance for
the elderly and
disabled
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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THINGS MONEY CAN’T BUY
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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THINGS MONEY CAN’T BUY
Just a few: Time, Talent, Love, Appreciation
Most money decisions are emotional
Giving Back—not always monetary
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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THINGS MONEY CAN’T BUY
Parent Appreciation Factor
Appreciation Factor
120
100
80
60
40
20
0
Age:
Newborn
1-5
6-12
12-15
16-18
19-22
22-25
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
26-30
31-50
51 and
older
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THINGS MONEY CAN’T BUY
THEN (3 years old)
“My mom is great! She
knows everything!”
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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THINGS MONEY CAN’T BUY
THEN (3 years old)
NOW (17 years old)
“My mom is great! She
knows everything!”
“I’m 17 and I know
everything!”
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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THINGS MONEY CAN’T BUY
“I've learned that you
shouldn't go through life with a
catcher's mitt on both hands;
you need to be able to throw
something back.”
--Maya Angelou
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
42
QUICK 5: FINANCIAL IQ QUIZ
1. Is the unemployment rate greater among those with or
without a college degree?
2. What is the only website to get your free annual credit
report?
3. Name one of the best places to get a loan?
4. What has the biggest impact on your credit score?
5. Is it possible to get to $1 million without winning the lottery?
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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QUESTIONS?
Let’s talk about YOUR
money and personal finance questions
?
?
?
Want more resources to help raise
your Financial IQ? Go to:
Email questions, comments or
suggestions to:
www.moneyletters2.com
jackie@moneyletters2.com
Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.
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